Sensex and Nifty closed higher on Monday extending last week's gains amid positive global equities. Tracking gains from index heavyweight stocks from IT and auto sector, Sensex climbed 465 points to 36,487 and Nifty rose 156 points to 10,763.
HDFC Bank, IndusInd Bank, Bajaj Finance and NTPC were among the top gainers today while HUL and Bajaj Auto were among the losers. Sectorally, barring pharma, gains were broad-based with realty ending 3% higher, followed by 2.8% rise in auto scrips and over 1.5% gain in IT and banking stocks.
As per brokerages, global market trends will continue to dictate the domestic markets, in the absence of any major domestic event.
Asian counterparts, including SGX Nifty, started off the weak on a positive note, amid upbeat jobs and economic data. While Wall Street ended on a positive note before its holiday weekend, concerns over rising US coronavirus cases took a toll on European indices that closed in the red on Friday. However, domestic markets gained by the afternoon session, bouyed by European shares that reversed trend amid positive global equities. Ahead of holiday due to US Independence Day, US futures were trading mildly in red.
Commenting on markets' strong bullish trend, Vinod Nair, Head of Research at Geojit Financial Services said," Global markets rallied on hopes of a faster Chinese economic revival which could provide support to the global economy. The positivity regarding the recovery is extending to Indian markets also, in spite of surging infections, along with liquidity."
S Ranganathan, Head of Research at LKP securities said,"Disengagement in the Galwan Valley fired up the Bulls today as Reliance, Maruti & Bajaj Finance notched up smart gains. The key highlight of the day was the participation seen in the broader market in select PSU stocks."
On the earnings front, IT major TCS will kick off Q1 earnings season with its Q1 results on July 9, which will decide the direction of market. In terms of Q4 results, Suzlon, NBCC, IFB Industries among others will report their earnings today.
Expressing views on Nifty's technical indicators, Ajit Mishra, VP - Research, Religare Broking said," If we look at the index, Nifty has now approached the resistance zone of 10800-11000 which coincides with the '200 SMA' on the daily chart. However, so far, there are no signs of reversal and hence, one should avoid taking any contra bet. With today's gap, 10700-10630 will now be seen as the immediate support for the index. The Nifty Midcap50 index has surpassed its swing high and its '200 SMA' indicating that stocks from the midcap space could continue to provide good opportunities for momentum traders."
On the currency front, Indian rupee, the local currency gained 14 paise to 74.52 per dollar on Monday amid weakness in the greenback and gains in the domestic equity market. The domestic unit, however, closed lower at 74.67 per US dollar against Friday's close of 74.63 per US dollar.
Meanwhile, number of COVID-19 cases worldwide has crossed 1.14 crore and the death toll has topped 5.33 lakh. In India, the number of infections spiked to 6,97,413, while the death toll due to the disease rose to 19,693.